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A Study Of The Benami Transactions (Prohibition) Amendment Act 2016

Advocate Deepa Khare

The Benami Transactions (Prohibition) Amendment Act 2016 imposes draconian consequences on persons seeking to evade the law by holding property by illegitimate means. However, the hammer of the law, if literally interpreted, also adversely affects innocent persons who enter into genuine transactions. Advocate Deepa Khare has analyzed the statutory provisions in detail and explained how they should be interpreted so that the objective of the legislature is met while avoiding hardship to genuine transactions

1. Introduction:

1.1 Benami Transactions Prohibition (Amendment) Act 2016 has finally taken its shape and is no more a ‘Paper Tiger’. The subject has been a matter of much debate and deliberation before its insertion. Much has been said for and against the enactment which indicates the intricacy and vexed character. Inspite of diverse views, the enactment comes with a strong conviction about the evil of “Benami”, legislature has outspoken about time and again. The zeal expressed by the legislature to go out of the way to eradicate the evil, raises concerns for those who have been victimized in these transactions and likely be face the serious consequences as well as for those who acted out of long perpetuated habit or psychology. It is essential that the legislation is taken in its correct perspective and achieves the very objective for which it is conceived. The peculiarity in operation of the Act is seen with an interplay between larger public interest (eradication of illegal means and resources) v. equity and justice (exclusion of genuine transactions).

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Direct Tax Changes Proposed In The Union Budget 2018

CA Paras Dawar has systematically set out all the amendments proposed to be made to the Direct Tax Laws by the Finance Bill 2018 in a tabular format. He has then compared the amendments with the existing law and explained the precise impact of the proposed amendments. He has also systematically bifurcated the amendments based on whether they have financial implications or make changes in compliance procedures or affect the departmental procedure. The format prepared by the author makes it easy to come to grips with all the changes in one glance

Direct Tax changes proposed in the Union Budget, 2018

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Law On Bail, Anticipatory Bail, Discharge And Quashing Of Proceedings Under Direct Taxes

Advocate Aditya R. Ajgaonkar has pointed out that the aggressive approach of the CBDT with regard to launching prosecution for offenses under the Direct Tax Laws means that all taxpayers and professionals have to be abreast with the provisions in the Code of Criminal Procedure relating to Anticipatory Bail, Bail, Discharge and Quashing of Proceedings, etc. He has explained the entire law on the subject with admirable clarity


1. The Wanchoo Committee Report was unequivocal when it opined that the fear of civil liabilities and penalties have proven ineffective in as much as they do not adequately deter the assessees that decide to tread upon the fine line that differentiates between the grey area of adventurous tax planning and the dark area of tax evasion. The report stressed upon the need to dole out exemplary punishment in the form of prosecutions to instill fear in the mind of the assessees seeking to traverse that grey area. “… The provisions for imposition of penalty fail to instil adequate fear in the minds of tax evaders. Prospect of landing in jail on the other hand, is a far more dreaded consequence – to operate in terorem upon the erring taxpayers. Besides, a conviction in court of law is attended with several legal and social disqualifications as well. In order, therefore to make enforcement of tax laws really effective, we consider it necessary for the Department to evolve a vigorous prosecution policy and to pursue it unsparingly.

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The Law On Taxability Of Cash Credits U/s 68 In The Context Of The Negotiable Instruments Act, 1881

CA Dev Kumar Kothari has explained the nuances of the law relating to taxability of unexplained cash credits under section 68 of the Income-tax Act, 1961 in the context of the Negotiable Instruments Act, 1881. He has made copious reference to the statutory provisions and judicial pronouncements on the issue


A cheque held by the holder of cheque in due course, is the source of money, which he receives on presentation of cheque to the drawee bank. – Provisions of S.68 of Income-tax Act, must be read with the Negotiable Instruments Act, 1881

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Finance Bill 2018 – Salary – Drafting Mistakes – Reasonably Higher Deduction Is Desirable

CA Dev Kumar Kothari has argued that there is a drafting mistake in the Finance Bill 2018 relating to the grant of standard deduction. He has explained what that mistake is and offered suggestions on how it can be rectified

There appears a drafting mistake in proposed clauses and notes vis a vis speech of FM and explanatory notes on clause no. 7 and 8 of the FB. Higher deduction linked with salary amount is desirable.

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Budget 2018: The return of tax regime for Long-Term Capital Gains in a new Avatar


The proposal in the Finance Bill 2018 to reintroduce tax on long-term capital gains on shares has created confusion amongst taxpayers and investors. CA Vyomesh Pathak has analyzed the proposed amendments and explained their implications with reference to practical examples

1. Over the past few weeks, even before the Budget session for the year 2018-19 started, there were already rounds of speculations going around that the Government is keen on bringing back the tax regime on the Long Term Capital Gains on sale of shares.
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Budget 2018: Analysis Of Direct Tax Proposals


CA Vidhan Surana & CA Sunil Maloo have conducted a succinct analysis of the provisions of the Finance Bill 2018 and explained the important amendments that it seeks to incorporate in the Direct Tax law. The authors have also given practical examples to explain the impact of the amendments

1. Governments Attempt to Reduce Cash Economy – Impact


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Law On Offenses By Companies And Prosecution Of Directors

Section 278B of the Income-tax Act imposes draconian consequences of prosecution upon directors for offenses committed by the Company. Advocate Rahul K. Hakani has explained the nature and scope of liability and also drawn attention to all the important judgements on the subject

1.      Introduction

Numerous occasions arise when it is alleged that an offence under any Act is committed by a company and prosecution is invariably sought to be launched against the company, its directors and some of its executives. As "Company" is an artificial person created by law, and is capable of acting only through human agency occupying the position of directors and executives, it is but natural that all such persons are charged for the offence.

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Guide To Offenses And Prosecutions Under The Income-tax Act, 1961 (With Video)

Dr. K. Shivaram, Sr. Advocate, has conducted a comprehensive analysis of the law and procedure relating to offenses and prosecution under the Income-tax Act, 1961. He has made reference to all important case laws and circulars issued by the CBDT on the subject and explained the entire law in a succinct manner

1. Introduction

Under the Income-tax Act, 1961 there are various provisions for compliance with taxing provisions and the collection of taxes. The Income-tax Act seeks to enforce tax compliance in a three fold manner; namely :-

1. Imposition of interests.

2. Imposition of penalties and,

3. Prosecutions

The genesis for the need of stringent imposition of prosecutions find its roots in the Wanchoo Committee Report. The said Committee in their final report recommended as under:-

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BEPS: Master File and CbCR: Step Towards Making World One Tax Jurisdiction

CA Chaitanya Maheshwari and Advocate Ameya Khare have explained the entire law and practice relating to Master File (MF) documentation and Country-by-Country Reporting (CbCR) as are applicable under sections 92D and 286 of the Income-tax Act, 1961 read with the OECD guidelines on ‘Base Erosion and Profit Shifting’ (BEPS)

BEPS Background
The international tax system was born following the First World War, in a climate of financial instability and political uncertainty. It resulted from technical studies in the 1920s and international negotiations in 1928 through the League of Nations.

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